“Real estate agents point to San Francisco, Silicon Valley and certain parts of the East Bay, with short commute times and good public schools, as sweet spots in the market. A scarcity of single-family homes in San Francisco and the strength of Google and other technology companies are propping up the markets in those locations, agents said.” Sound familiar???? www.sfgate.com/realestate/amp/For-the-Bay-Area-real-estate-industry-2007-went-3233790.php
Same with Seattle, lot of noise, but not too steep a fall. Fundamentals are strong in these places.
Take that graph back another 10 years and you’ll see how bad the bubble truly is. Also, note that from peak to valley the recession wiped out 4 years worth of gains (went back to 2005 levels) and it took another 4 years to get back to pre-recession peak (in the good area). That’s dramatic. Final point. Asset prices always go up over long periods of time. Take the price of milk over the last 30 years and I suspect we’ll see similar results. Not disputing the long term trend, just pointing out parallel sentiments in 2007 and today.
With all the hq2s being planned east the companies are realizing that the Bay Area is not sustainable. More must be done to make the area affordable.
Barring a major earthquake, I dont see any other reason for drastic long term drop in prices.
Earthquakes can manifest themselves in many forms and are all very hard to predict. Unless you were able to predict the dot come bust and financial crisis, I’d say your vision is about as good as everyone else’s (including mine) when it comes to seeing anything long term.
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Yes, the good places did not drop too much. Bay area was possibly the best RE investment to weather the recession.
Inaccurate. Only the really good neighborhoods of Bay Area.
Yes. Of course we're not talking about Hayward, Fremont and Pleasanton here.